Labour market flexibility and employment adjustment

micro evidence from UK establishments

J. Haskel, B. Kersley, C. Martin

Research output: Contribution to journalArticle

17 Citations (Scopus)

Abstract

This paper will study how firms react to demand shocks, examining how different aspects of flexibility shape their responses. The main findings are: very few firms choose to adjust price in response to a demand shock; firms with more flexibility are more likely to respond to demand shocks by adjusting employment and hours. The results provide a microeconomic explanation for recent macroeconomic evidence that labour input has become more closely aligned to the business cycle.

Original languageEnglish
Pages (from-to)362-379
Number of pages18
JournalOxford Economic Papers
Volume49
Issue number3
DOIs
Publication statusPublished - 1 Jul 1997

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Labour market flexibility and employment adjustment : micro evidence from UK establishments. / Haskel, J.; Kersley, B.; Martin, C.

In: Oxford Economic Papers, Vol. 49, No. 3, 01.07.1997, p. 362-379.

Research output: Contribution to journalArticle

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